News / National
Zimbabwe white former farmers start receiving compensation
10 Apr 2025 at 09:01hrs | Views
The Government of Zimbabwe has begun compensating white former commercial farmers whose land was repossessed during the Land Reform Programme, marking a pivotal step in the country's efforts to resolve a decades-old issue and accelerate its arrears clearance and debt resolution agenda.
Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube, announced the move, revealing that Treasury had issued US$307.9 million in bonds and disbursed US$3.1 million in cash to 378 farmers as part of the initial payment under the revised Global Compensation Deed (GCD).
The cash component represents one percent of the US$311 million allocated for the first payment batch, with the remainder to be covered through a 10-year US dollar-denominated bond. So far, the Land Compensation Committee has approved 740 claims.
The GCD, signed in 2020, is an agreement between the Government and dispossessed white farmers to pay US$3.5 billion for improvements made on farms acquired during the fast-track land reform process.
"This is part of our broader reform agenda aimed at economic recovery and the clearance of our debt arrears," said Prof Ncube. "We have now begun to honour that agreement."
The compensation process also includes former landowners protected under Bilateral Investment Promotion and Protection Agreements (BIPPAs), with 94 claims worth US$145 million already approved and US$20 million disbursed so far. Most BIPPA beneficiaries are from the Netherlands, Switzerland, Germany, Denmark, and the former Yugoslavia.
Under the Constitution, BIPPA beneficiaries are entitled to compensation for both land and improvements, while others will receive compensation for improvements only.
The bonds issued to former farmers carry a fixed annual coupon rate of 2 percent and are exempt from all taxation, ensuring full value for recipients - especially elderly beneficiaries. Prof Ncube noted that the Government plans to list the bonds on the Victoria Falls Stock Exchange to facilitate trading, allowing bondholders to liquidate them before maturity if needed.
"These bonds are classified as liquid and granted prescribed asset status, making them attractive to institutional investors like pension funds," Prof Ncube added.
The initial GCD plan envisioned a US$1.75 billion upfront payment followed by four annual instalments of US$437.5 million. However, due to financing constraints, the Government re-engaged stakeholders to agree on the current phased compensation plan.
Andrew Pascoe, Chairperson of the Compensation Steering Committee, confirmed that the first payments were made two weeks ago and expressed optimism that more farmers who had previously withheld applications would now come forward.
"We expect the numbers of applications to increase as confidence builds around the process," said Mr Pascoe.
The compensation process forms a core component of Zimbabwe's Structured Dialogue Platform for Arrears Clearance and Debt Resolution, launched in December 2022. The platform focuses on reforms in governance, economic stability, land tenure, and compensation.
Outgoing African Development Bank (AfDB) President Dr Akinwumi Adesina is leading the initiative, with former Mozambican President Joaquim Chissano acting as facilitator.
Deputy Chief Secretary in the Office of the President and Cabinet, Mr Willard Manungo, said the disbursements reflect Zimbabwe's commitment to its reform and re-engagement agenda.
"These positive developments strengthen Zimbabwe's hand in negotiations around debt resolution and help rebuild trust with the international community," said Mr Manungo.
United Nations Development Programme (UNDP) Resident Representative Dr Ayodele Odusola applauded the progress, noting its significance in national reconciliation and economic revival.
"These steps are vital for restoring trust, advancing reconciliation, and rebuilding Zimbabwe's agricultural sector. We remain committed to supporting a transparent, inclusive, and sustainable process," Dr Odusola said.
As Zimbabwe pushes forward with its compensation commitments, analysts say the move is not only vital for healing historical wounds but also key to unlocking international funding needed for infrastructure development, industrial expansion, and job creation.
Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube, announced the move, revealing that Treasury had issued US$307.9 million in bonds and disbursed US$3.1 million in cash to 378 farmers as part of the initial payment under the revised Global Compensation Deed (GCD).
The cash component represents one percent of the US$311 million allocated for the first payment batch, with the remainder to be covered through a 10-year US dollar-denominated bond. So far, the Land Compensation Committee has approved 740 claims.
The GCD, signed in 2020, is an agreement between the Government and dispossessed white farmers to pay US$3.5 billion for improvements made on farms acquired during the fast-track land reform process.
"This is part of our broader reform agenda aimed at economic recovery and the clearance of our debt arrears," said Prof Ncube. "We have now begun to honour that agreement."
The compensation process also includes former landowners protected under Bilateral Investment Promotion and Protection Agreements (BIPPAs), with 94 claims worth US$145 million already approved and US$20 million disbursed so far. Most BIPPA beneficiaries are from the Netherlands, Switzerland, Germany, Denmark, and the former Yugoslavia.
Under the Constitution, BIPPA beneficiaries are entitled to compensation for both land and improvements, while others will receive compensation for improvements only.
The bonds issued to former farmers carry a fixed annual coupon rate of 2 percent and are exempt from all taxation, ensuring full value for recipients - especially elderly beneficiaries. Prof Ncube noted that the Government plans to list the bonds on the Victoria Falls Stock Exchange to facilitate trading, allowing bondholders to liquidate them before maturity if needed.
"These bonds are classified as liquid and granted prescribed asset status, making them attractive to institutional investors like pension funds," Prof Ncube added.
The initial GCD plan envisioned a US$1.75 billion upfront payment followed by four annual instalments of US$437.5 million. However, due to financing constraints, the Government re-engaged stakeholders to agree on the current phased compensation plan.
Andrew Pascoe, Chairperson of the Compensation Steering Committee, confirmed that the first payments were made two weeks ago and expressed optimism that more farmers who had previously withheld applications would now come forward.
"We expect the numbers of applications to increase as confidence builds around the process," said Mr Pascoe.
The compensation process forms a core component of Zimbabwe's Structured Dialogue Platform for Arrears Clearance and Debt Resolution, launched in December 2022. The platform focuses on reforms in governance, economic stability, land tenure, and compensation.
Outgoing African Development Bank (AfDB) President Dr Akinwumi Adesina is leading the initiative, with former Mozambican President Joaquim Chissano acting as facilitator.
Deputy Chief Secretary in the Office of the President and Cabinet, Mr Willard Manungo, said the disbursements reflect Zimbabwe's commitment to its reform and re-engagement agenda.
"These positive developments strengthen Zimbabwe's hand in negotiations around debt resolution and help rebuild trust with the international community," said Mr Manungo.
United Nations Development Programme (UNDP) Resident Representative Dr Ayodele Odusola applauded the progress, noting its significance in national reconciliation and economic revival.
"These steps are vital for restoring trust, advancing reconciliation, and rebuilding Zimbabwe's agricultural sector. We remain committed to supporting a transparent, inclusive, and sustainable process," Dr Odusola said.
As Zimbabwe pushes forward with its compensation commitments, analysts say the move is not only vital for healing historical wounds but also key to unlocking international funding needed for infrastructure development, industrial expansion, and job creation.
Source - the chronicle
